Home › Forums › Financial Markets/Economics › $7 gasoline in the near future???
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June 28, 2008 at 5:49 PM #230533June 28, 2008 at 8:53 PM #230477
equalizer
ParticipantThis is from Gene Epstein, Barrons economic editor who is Mr. Optimistic (I’ve called him pollyannish) free-market guy who says speculation is causing food and energy bubble:
“Much as I hate to agree with any politician who blames the speculator whenever goods get too dear, which usually amounts to shooting the messenger, Homeland Security Committee Chair Joe Lieberman unfortunately had a point when he accused speculators of “artificially inflating the prices of food and fuel futures.
The rules the CFTC should enforce are position limits that specify the maximum number of contracts in a given market that any single speculative entity can hold. These limits, which generally amount to about 2% of all contracts outstanding, are set for a good reason: The commodity markets are too small to absorb an excess of speculative dollars. Even at current inflated prices and a near-record level of trading interest, the total contract value on all domestic commodity exchanges comes to only $960 billion. By way of comparison, even at current depressed prices, the total market capitalization of all domestically traded stocks tops $13 trillion.
History teaches that regulatory commissions often become hostage to the very industry they’re supposed to regulate. In that regard, it’s worth noting that CFTC Commissioner Jill Sommers is a former Head of Government Affairs at the International Swaps and Derivatives Association.
Say that legislators do ride herd over the CFTC by requiring that it enforce position limits. Even if, as proposed, the rules were phased in slowly, Briese fears an anticipatory collapse in prices that could drive the swaps dealers into bankruptcy. While that would hardly be welcome, the decline in food and energy prices would provide welcome relief to consumers.”
Even he has become cynical, fearing that regulators are beholden to their industry!!
Full story at
http://online.barrons.com/article/SB121460970889212409.html?mod=9_0031_b_this_weeks_magazine_columnsJune 28, 2008 at 8:53 PM #230598ParticipantThis is from Gene Epstein, Barrons economic editor who is Mr. Optimistic (I’ve called him pollyannish) free-market guy who says speculation is causing food and energy bubble:
“Much as I hate to agree with any politician who blames the speculator whenever goods get too dear, which usually amounts to shooting the messenger, Homeland Security Committee Chair Joe Lieberman unfortunately had a point when he accused speculators of “artificially inflating the prices of food and fuel futures.
The rules the CFTC should enforce are position limits that specify the maximum number of contracts in a given market that any single speculative entity can hold. These limits, which generally amount to about 2% of all contracts outstanding, are set for a good reason: The commodity markets are too small to absorb an excess of speculative dollars. Even at current inflated prices and a near-record level of trading interest, the total contract value on all domestic commodity exchanges comes to only $960 billion. By way of comparison, even at current depressed prices, the total market capitalization of all domestically traded stocks tops $13 trillion.
History teaches that regulatory commissions often become hostage to the very industry they’re supposed to regulate. In that regard, it’s worth noting that CFTC Commissioner Jill Sommers is a former Head of Government Affairs at the International Swaps and Derivatives Association.
Say that legislators do ride herd over the CFTC by requiring that it enforce position limits. Even if, as proposed, the rules were phased in slowly, Briese fears an anticipatory collapse in prices that could drive the swaps dealers into bankruptcy. While that would hardly be welcome, the decline in food and energy prices would provide welcome relief to consumers.”
Even he has become cynical, fearing that regulators are beholden to their industry!!
Full story at
http://online.barrons.com/article/SB121460970889212409.html?mod=9_0031_b_this_weeks_magazine_columnsJune 28, 2008 at 8:53 PM #230611ParticipantThis is from Gene Epstein, Barrons economic editor who is Mr. Optimistic (I’ve called him pollyannish) free-market guy who says speculation is causing food and energy bubble:
“Much as I hate to agree with any politician who blames the speculator whenever goods get too dear, which usually amounts to shooting the messenger, Homeland Security Committee Chair Joe Lieberman unfortunately had a point when he accused speculators of “artificially inflating the prices of food and fuel futures.
The rules the CFTC should enforce are position limits that specify the maximum number of contracts in a given market that any single speculative entity can hold. These limits, which generally amount to about 2% of all contracts outstanding, are set for a good reason: The commodity markets are too small to absorb an excess of speculative dollars. Even at current inflated prices and a near-record level of trading interest, the total contract value on all domestic commodity exchanges comes to only $960 billion. By way of comparison, even at current depressed prices, the total market capitalization of all domestically traded stocks tops $13 trillion.
History teaches that regulatory commissions often become hostage to the very industry they’re supposed to regulate. In that regard, it’s worth noting that CFTC Commissioner Jill Sommers is a former Head of Government Affairs at the International Swaps and Derivatives Association.
Say that legislators do ride herd over the CFTC by requiring that it enforce position limits. Even if, as proposed, the rules were phased in slowly, Briese fears an anticipatory collapse in prices that could drive the swaps dealers into bankruptcy. While that would hardly be welcome, the decline in food and energy prices would provide welcome relief to consumers.”
Even he has become cynical, fearing that regulators are beholden to their industry!!
Full story at
http://online.barrons.com/article/SB121460970889212409.html?mod=9_0031_b_this_weeks_magazine_columnsJune 28, 2008 at 8:53 PM #230646ParticipantThis is from Gene Epstein, Barrons economic editor who is Mr. Optimistic (I’ve called him pollyannish) free-market guy who says speculation is causing food and energy bubble:
“Much as I hate to agree with any politician who blames the speculator whenever goods get too dear, which usually amounts to shooting the messenger, Homeland Security Committee Chair Joe Lieberman unfortunately had a point when he accused speculators of “artificially inflating the prices of food and fuel futures.
The rules the CFTC should enforce are position limits that specify the maximum number of contracts in a given market that any single speculative entity can hold. These limits, which generally amount to about 2% of all contracts outstanding, are set for a good reason: The commodity markets are too small to absorb an excess of speculative dollars. Even at current inflated prices and a near-record level of trading interest, the total contract value on all domestic commodity exchanges comes to only $960 billion. By way of comparison, even at current depressed prices, the total market capitalization of all domestically traded stocks tops $13 trillion.
History teaches that regulatory commissions often become hostage to the very industry they’re supposed to regulate. In that regard, it’s worth noting that CFTC Commissioner Jill Sommers is a former Head of Government Affairs at the International Swaps and Derivatives Association.
Say that legislators do ride herd over the CFTC by requiring that it enforce position limits. Even if, as proposed, the rules were phased in slowly, Briese fears an anticipatory collapse in prices that could drive the swaps dealers into bankruptcy. While that would hardly be welcome, the decline in food and energy prices would provide welcome relief to consumers.”
Even he has become cynical, fearing that regulators are beholden to their industry!!
Full story at
http://online.barrons.com/article/SB121460970889212409.html?mod=9_0031_b_this_weeks_magazine_columnsJune 28, 2008 at 8:53 PM #230662ParticipantThis is from Gene Epstein, Barrons economic editor who is Mr. Optimistic (I’ve called him pollyannish) free-market guy who says speculation is causing food and energy bubble:
“Much as I hate to agree with any politician who blames the speculator whenever goods get too dear, which usually amounts to shooting the messenger, Homeland Security Committee Chair Joe Lieberman unfortunately had a point when he accused speculators of “artificially inflating the prices of food and fuel futures.
The rules the CFTC should enforce are position limits that specify the maximum number of contracts in a given market that any single speculative entity can hold. These limits, which generally amount to about 2% of all contracts outstanding, are set for a good reason: The commodity markets are too small to absorb an excess of speculative dollars. Even at current inflated prices and a near-record level of trading interest, the total contract value on all domestic commodity exchanges comes to only $960 billion. By way of comparison, even at current depressed prices, the total market capitalization of all domestically traded stocks tops $13 trillion.
History teaches that regulatory commissions often become hostage to the very industry they’re supposed to regulate. In that regard, it’s worth noting that CFTC Commissioner Jill Sommers is a former Head of Government Affairs at the International Swaps and Derivatives Association.
Say that legislators do ride herd over the CFTC by requiring that it enforce position limits. Even if, as proposed, the rules were phased in slowly, Briese fears an anticipatory collapse in prices that could drive the swaps dealers into bankruptcy. While that would hardly be welcome, the decline in food and energy prices would provide welcome relief to consumers.”
Even he has become cynical, fearing that regulators are beholden to their industry!!
Full story at
http://online.barrons.com/article/SB121460970889212409.html?mod=9_0031_b_this_weeks_magazine_columnsJune 30, 2008 at 6:59 PM #231521poorsaver
Participant“”I want a gov’t subsidy to help me get rid of my 12MPG SUV.”
That will be next. A gov’t bailout for owners of Hummers, Range Rovers, Escalades, etc. The genie is out of the bottle!
June 30, 2008 at 6:59 PM #231643Participant“”I want a gov’t subsidy to help me get rid of my 12MPG SUV.”
That will be next. A gov’t bailout for owners of Hummers, Range Rovers, Escalades, etc. The genie is out of the bottle!
June 30, 2008 at 6:59 PM #231654Participant“”I want a gov’t subsidy to help me get rid of my 12MPG SUV.”
That will be next. A gov’t bailout for owners of Hummers, Range Rovers, Escalades, etc. The genie is out of the bottle!
June 30, 2008 at 6:59 PM #231695Participant“”I want a gov’t subsidy to help me get rid of my 12MPG SUV.”
That will be next. A gov’t bailout for owners of Hummers, Range Rovers, Escalades, etc. The genie is out of the bottle!
June 30, 2008 at 6:59 PM #231705Participant“”I want a gov’t subsidy to help me get rid of my 12MPG SUV.”
That will be next. A gov’t bailout for owners of Hummers, Range Rovers, Escalades, etc. The genie is out of the bottle!
June 30, 2008 at 10:59 PM #231601temeculaguy
ParticipantPlug in, hybrids and multi fuel have no excuse to be birth control cars. They will be sexy, fast and make you want to drive them, just give it a little more time, all brought to you by $5 gas.
http://www.fiskerautomotive.com/
http://automobiles.honda.com/cr-z/
click on the second picture, that cr-z is pretty cool (profile is just so-so but the front is great)June 30, 2008 at 10:59 PM #231724ParticipantPlug in, hybrids and multi fuel have no excuse to be birth control cars. They will be sexy, fast and make you want to drive them, just give it a little more time, all brought to you by $5 gas.
http://www.fiskerautomotive.com/
http://automobiles.honda.com/cr-z/
click on the second picture, that cr-z is pretty cool (profile is just so-so but the front is great)June 30, 2008 at 10:59 PM #231732ParticipantPlug in, hybrids and multi fuel have no excuse to be birth control cars. They will be sexy, fast and make you want to drive them, just give it a little more time, all brought to you by $5 gas.
http://www.fiskerautomotive.com/
http://automobiles.honda.com/cr-z/
click on the second picture, that cr-z is pretty cool (profile is just so-so but the front is great)June 30, 2008 at 10:59 PM #231775ParticipantPlug in, hybrids and multi fuel have no excuse to be birth control cars. They will be sexy, fast and make you want to drive them, just give it a little more time, all brought to you by $5 gas.
http://www.fiskerautomotive.com/
http://automobiles.honda.com/cr-z/
click on the second picture, that cr-z is pretty cool (profile is just so-so but the front is great) -
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